Best Approaches to Building An Asset Management System
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Best Approaches to Building An Asset Management System

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  • 41
  • Five core questions should be answered as part of an Asset Management Program: What is the current state of my assets? 2. What is my required level of service/ performance level? 3. Which assets are critical to sustained performance? 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? 5. What is my best long-term funding strategy?
  • Five core questions should be answered as part of an Asset Management Program: What is the current state of my assets? 2. What is my required level of service/ performance level? 3. Which assets are critical to sustained performance? 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? 5. What is my best long-term funding strategy?
  • Five core questions should be answered as part of an Asset Management Program: What is the current state of my assets? 2. What is my required level of service/ performance level? 3. Which assets are critical to sustained performance? 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? 5. What is my best long-term funding strategy?
  • Five core questions should be answered as part of an Asset Management Program: What is the current state of my assets? 2. What is my required level of service/ performance level? 3. Which assets are critical to sustained performance? 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? 5. What is my best long-term funding strategy?
  • Five core questions should be answered as part of an Asset Management Program: What is the current state of my assets? 2. What is my required level of service/ performance level? 3. Which assets are critical to sustained performance? 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? 5. What is my best long-term funding strategy?
  • Based on these five questions, the framework for an Asset Management Program - what needs to be done in establishing a Program is as follows: (based on the International Infrastructure Management Manual) Set Target Level of Service/Performance Goals Develop Asset Inventory Condition Assessment, Failure Modes Use management systems to develop inventory and condition, important tool for determining failure modes. AS well as determining RSL and determine life cycles Determine Remaining Service Life Determine Life Cycle & Replacement Costs (con’t)
  • Base on what was found during the International and Domestic Scanning Reviews on Asset Management, the following are a few of the key ingredients of successful programs.
  • There are challenges as an Agency moves forward in implementing an Asset Management Program. As the Program is implemented it is important that it is used for decision making. In reality, making decisions is managing the assets. The issue is how well informed are those decisions. Transportation agencies are collecting lots of data, it is important to look at the data being collected to ensure it is the data that is needed and linked to performance measures and available. It’s important to develop and convey top management support of Asset Management as an Asset Management culture is established in an organization. As an Asset Management Program is established most agencies have established Asset Management positions in their organization responsible for the implementation of the Program. Not to say that the Program won’t be successful if such positions are not established, but it is important to identify responsibility and have champions. As with most changes, Agencies have to be aware that there may be resistance to change, but once it is realized that the goal is to make more informed decision based on engineering and economic analysis, the Asset Management culture will grow.
  • A transportation agency’s mission in general is to deliver a transportation system to their customers that meets the needs of the customers in a safe and efficient manner. Using Transportation Asset Management will strengthen an agency’s approach. It is important to make the connections between what is undertaken and the overall performance of the agency – maximizing highway service performance for any given budget. Transportation agencies have to deal with important long-term issues. Those issues need to be framed in terms of the agency goals and objectives with an eye on system performance and how it can be measured. Integration and linking of resources, especially information resources, and the use of improved tools will enable the agency to do a better job of long-range planning and programming activities. Asset Management best practices are also integral to design, construction, maintenance, safety, environmental considerations, and operations. Agencies have to be truly cost-conscious and strive for getting the best system performance possible with the available resources. Agencies need to be accountable. The agency using Transportation Asset Management will have improved customer satisfaction and will be in a better position to secure needed funding as service levels are matched with customer expectations.

Best Approaches to Building An Asset Management System Best Approaches to Building An Asset Management System Presentation Transcript

    • July 9, 2009
    Best Approaches to Building An Asset Management System
  • Agenda
    • What is asset management?
      • How does it apply to transit?
    • What are the current best practices in transit asset management?
      • What are others doing?
    • How is asset management practiced in other modes?
      • Lessons from the highway community
    • Where do we go from here?
  • What is Asset Management?
  • Transportation Asset Management (TAM): Definition
    • “ Asset management” has different meanings to different users:
      • For many, “asset management” is synonymous with a single component, such as maintenance management
      • True asset management provides a broader, multi-disciplinary and agency wide perspective on the optimal long-term management of capital assets
    • The US highway community is pursuing a much broader definition:
    “ Transportation Asset Management is a strategic and systematic process of operating, maintaining, improving and expanding physical assets effectively throughout their lifecycle. It focuses on business and engineering practices for resource allocation and utilization, with the objective of better decision making based upon quality information and well defined objectives.” What is Asset Management?
  • Transportation Asset Management (TAM): Definition (cont)
    • Based on this broader definition, asset management is:
      • Strategic and not tactical (i.e., has a long-term focus)
      • Seeks to balance the competing needs of operations, maintenance, reinvestment and system expansion
      • An organization wide endeavor : It seeks to integrate planning, engineering, funding, and IT perspectives
      • Seeks to make informed and prioritized decisions regarding the use of scare resources based on reliable data
    What is Asset Management?
  • Infrastructure Asset Management: IIMM Definition
    • The International Infrastructure Management Manual defines asset a management as follows:
    • “ The goal of infrastructure asset management is to meet a required level of service, in the most cost effective manner, through the management of assets for present and future customers. Key elements include:
    • Taking a life cycle approach
    • Developing cost-effective strategies for the long-term
    • Providing a defined level of service quality and then monitoring performance
    • Meeting the needs of growth
    • Managing risks associated with failures
    • Sustainable use of physical resources
    What is Asset Management?
  • Components of Transportation Asset Management
    • Comprehensive asset management includes:
    • Goals and Objectives: For example, attainment of a state of good repair
    • Asset Inventory: Listing of all fixed assets, including type, condition, remaining life and value
    • Condition Assessment Process: Process to assess the condition of all inventory assets
    • Decision Support Tools (models): Tools to analyze and prioritize long-term investment needs
    • Options and Tradeoff Analysis: Process to evaluate the investment tradeoffs and investment returns of alternate investment options
    • Decision Making Processes: Decision making process to allocate resources between competing uses
    • Monitoring: Performance measures and performance targets based on agency goals and objectives
    What is Asset Management?
  • What We Can Learn from Asset Management?
    • Asset management provides decision makers with reliable information on:
      • Current asset conditions
      • Investment levels required to attain specific objectives
      • Optimal resource allocation
    Output from MBTA’s SGR Model What is Asset Management? Years to Address Current Backlog if Funding is Unconstrained Backlog if Current Funding Levels Remain Unchanged ($410m/yr) Funding to Maintain Current Backlog ($470m/yr) Investment Required to Eliminate Backlog in Twenty Years ($620m/yr)
  • Transit Asset Management
  • “ Traditional” Transit Asset Management
    • “ Traditional” transit asset management encompasses a broad range of agency processes:
      • Maintenance management systems
      • Condition assessments
      • CIPs
      • Investment prioritization
      • Long-range planning
    • While each process supports asset management, each is generally performed:
      • By different staff
      • Covering differing periods of analysis
      • With differing emphasis on tactical vs. strategic objectives
      • Activities may not be fully coordinated
      • Performed differently by different agencies
    Transit Asset Management
  • “ Traditional” Transit Asset Management (Cont)
    • Industry and agency staff definitions of asset management can also differ based on professional and personal perspectives
      • Maintenance staff:
        • Short-term, maintenance activity focus
        • Fine level of asset detail
      • Capital planning staff:
        • Longer time horizon
        • Aggregated level of detail
      • Engineering staff: middle ground between these viewpoints
    • The following slide places these differing perspectives and planning horizons into a common framework
    • The objective is to help understand where each perspective is “coming from” and how they relate to each other
    Transit Asset Management
  • State of Good Repair Continuum Transit Asset Management
  • Transit Asset Management: Where do we go from here?
    • Given these existing functions, how can we begin to improve our TAM practices?
    • Following are suggested questions to address based on asset management best practices in other industries:
      • Are there clear, agency-wide goals, objectives and priorities to guide TAM activities?
      • Are these goals supported and articulated by senior management?
      • Is there an approved TAM plan that addresses these goals?
      • Are TAM activities coordinated between groups / functions?
      • Does the agency have the data sources / resources to support both asset management activities?
      • Do we have the tools required for the job?
      • How are we measuring and evaluating performance?
    Transit Asset Management
  • Best Practices in Transit Asset Management
  • FTA’s Recent Rail Mod Study Documented the TAM Practices of Nine Major Rail Transit Agencies
    • The study documented the current practices of the nine agencies with respect to the following key TAM program components:
      • Capital planning transit asset inventory
      • Collection and use of asset condition assessment data
      • Decision support tools
      • Investment prioritization processes
    • The key findings in each of these areas is considered next
    Transit Asset Management: Best Practices
  • Asset Inventory
    • Effective asset management requires good quality asset data
    • Asset Inventory Data
      • What does the agency own?
      • What condition is it in?
      • What is the remaining service life?
      • Are there plans to expand?
    Without good asset data, infrastructure managers cannot accurately assess conditions, needs or risks Transit Asset Management: Best Practices
  • Asset Inventory (cont)
    • Rail Mod Finding:
      • Seven of nine study agencies maintain asset inventories for capital planning purposes
      • This is much higher than in the past or for the general population of US transit agencies
      • Inventories differ significantly in structure, content and level of detail
    Differences between Fixed Asset Ledgers and Asset Inventories Transit Asset Management: Best Practices Characteristics Fixed Asset Ledger Capital Asset Inventory Purpose Calculating depreciation for accounting purposes Capital planning and asset management Typical Records Purchase contracts, past projects Pieces of equipment to be maintained and replaced Records aggregated by: Date purchased Asset type, useful life, and date purchased Basis for Useful Life Accounting schedules Engineering assessments Appropriate for Estimating Long-Term SGR Needs? No Yes
  • Asset Condition Monitoring
    • Asset inventory data is more valuable when coupled with current condition data
    • How should condition be measured?
      • Condition rating scale?
      • Percent exceeding useful life?
      • Performance based?
        • Mean time between failures
        • Delay time
        • Availability for service
        • Customer surveys
    Without reliable condition measures, owners cannot fully assess needs or progress Transit Asset Management: Best Practices
  • Asset Condition Monitoring (cont)
    • Rail Mod Finding:
      • Three of the nine study agencies conduct condition assessments on a regular basis
      • A fourth agency does so periodically
      • Transit lags other sectors in this respect
    Condition of US Rail Assets Transit Asset Management: Best Practices
  • Decision Support Tools
    • Decision support tools help asset managers conduct “what-if” analyses and better predict and prepare for future outcomes:
      • What happens to asset conditions if funding remains at current levels?
      • How does our current funding mix compare with projected future needs?
      • What level of funding do we need to attain SGR?
    • Rail Mod Finding
      • Only one of the nine agencies currently maintains a decision support tool
    Example Transit Decision Support Tools Transit Asset Management: Best Practices
  • TERM’s Needs Assessment Process for Rehab – Replacement Listing of Current Asset Inventory (Track, Structures, Systems, Facilities, Vehicles, Stations) Asset Inventory Simulated Decay, Rehab and Replacement of Transit Assets Over Twenty Year Period Model Run: Needs Forecast SGR Needs Forecast Investment Policy Rehabilitate / replace all assets with a condition of 2.5 or lower Asset Conditions Forecast Asset Decay Process Transit Asset Management: Best Practices
  • Investment Prioritization
    • Investment Prioritization
      • All agencies face a mix of investment needs including those for:
        • Asset preservation
        • Expansion to support growth / reduce crowding
        • Maintain / improve reliability, safety and service quality
      • What is the optimal allocation of limited funds?
    • Rail Mod Finding:
      • Only two of the nine study agencies currently employ objective processes / techniques to prioritize investment funds
    Which mix of investments best serves long-term customer needs? Transit Asset Management: Best Practices Infrastructure Condition Mobility Improvement Time 0 1 2 3 4 5 6 7 8 9 10 $A $B Time $B $A 0 1 2 3 4 5 6 7 8 9 10
  • Best Practices in Highway Asset Management
  • Highway Asset Management: Current Practices
    • State DOT’s, AASHTO and FHWA have been applying and refining highway asset management concepts for more than a decade
    • While highway practices are still not fully “matured”, the highway community is well out front of transit for TAM implementation
    Highway Asset Management
  • Highway Asset Management: Resources Highway Asset Management Media Resources Conferences
    • 8 th National Transportation Asset Management Conference (Portland Oregon, October 19-21)
    Committees
    • TRB Asset Management Committee
    • AASHTO Asset Management Subcommittee
    Decision Support Software
    • AASHTOWare: AssetManager NT and PT
    • FHWA HERS ST
    Education
    • National Highway Institute TAM Course
    Organizations
    • FHWA Office of Asset Management
    • Task Force on Asset Management
    Publications (sample)
    • AASHTO Asset Management Guide Vol. I and II
    • AASHTO-AGC-ARTBA Data Collection Guide
    • FHWA Case Study Series
    • FHWA Asset Management Primer
    • Best Practice Scans
    Web Sites
    • TAM Today
    • FHWA and State DOT sites
  • What Can We Learn From Highways?
    • While the mix of highway asset types differ significantly from transit’s (i.e., pavement and bridges vs. vehicles, stations, train control, traction power, track, etc.) the basic TAM concepts are the same
    • The following slides consider a range of “lessons learned” from highway TAM that can be applied to transit:
      • Key questions an asset management system should address
      • Framework for developing a TAM program
      • Attributes of successful TAM programs
      • Common implementation issues
      • TAM program impacts
    Highway Asset Management
  • Core Questions TAM Should Address
    • What is the current state of my assets?
          • What do I own?
          • Where is it?
          • What condition is it in?
          • What is its remaining useful life?
          • What is its remaining economic value?
    All State DOT’s Maintain Inventories And Condition Assessment Data for Their Pavement and Bridges Highway Asset Management
  • Core Questions TAM Should Address (Cont)
    • What is my required level of service/ performance level?
          • What is the demand for services by stakeholders?
          • Are there regulatory requirements?
          • What is my actual performance?
    As of 2002, More Than Half of State DOT’s Maintained Specific Condition Targets for Bridges and Pavement Highway Asset Management MODOT: Benchmarking Analysis
  • Core Questions TAM Should Address (Cont)
    • Which assets are critical to sustained performance?
          • How does it fail? How can it fail?
          • What is the likelihood of failure?
          • What does it cost to repair?
          • What are the consequences of failure?
          • How does this impact investment prioritization?
    Highway Asset Management Fatalities on Missouri Roads: Trend Tied to Improvement in Roadway Condition
  • Core Questions TAM Should Address (Cont)
    • What is my optimal mix of preservation, expansion and safety investment strategies?
          • What alternative management options exist?
          • Which are the most feasible for my organization?
    Highway Asset Management
  • Core Questions TAM Should Address (Cont)
    • What is my best long-term funding strategy?
    Highway Asset Management Funding Versus Pavement Condition Annual budget = $ 2 million Annual budget = $ 2.5 million Annual budget = $ 3 million
    • Set Target Level of Service/Performance Goals
    • Develop Asset Inventory
    • Conduct Condition Assessment
    • Determine Remaining Service Life
    • Determine Life Cycle & Replacement Costs
    • Determine Business Risk
    • Optimize Maintenance
    • Optimize Capital Investment
    • Determine Funding Strategy
    • Build Asset Management Plan
    TAM Program Implementation Graphic Highway Asset Management
  • The Most Successful Asset Management Programs:
    • Have performance measures that guide investment decisions
    • Adopt a ‘preservation first’ strategy for their investment priorities
    • Moved away from a “worst first” investment strategy, and instead have adopted investment principles that are based on life cycle costing and maximizing benefits
    • Undertake scenario analysis showing the consequences on performance measures of various investment decisions
    • Conduct an organizational self assessment as one of the most important starting points for implementing an asset management process
    • Have an Asset Management champion
    Highway Asset Management
  • Challenges to Implementation
      • Linking Asset Management to decision making
      • Collecting the right data for performance measures
      • Developing and conveying top management support and commitment
      • Identifying the individuals responsible for implementation
      • Overcome resistance to change
    Highway Asset Management
  • TAM Improves Service Quality and Resource Utilization By:
    • Maximizing service performance / reliability
    • Minimizing life cycle costs
    • Making managers more accountable
    • Being better positioned to anticipate and secure needed funding
    • Improving safety
    • Matching service levels with customer expectations
    Highway Asset Management Customer Satisfaction Survey
  • Where Do We Go From Here?